Let’s Talk Roles.
Successor Trustee, Executor, Power of Attorney Agent, Guardian, Grantor…what are these roles and who should you appoint?
Successor Trustee: You name this person or people in your Trust. Think of this person as the manager of your Trust assets after you pass. While you’re alive, you are the Trustee. It’s important to choose someone you trust to uphold your wishes. They will be responsible for distributing your assets, notifying beneficiaries, closing your accounts, and filing your final tax return.
Grantor: This is you. Grantor, Trustor, Settlor…all titles that refer to the creator/owner of the Trust. “Grantor” is also a term used in real property Deeds to refer to the owner of the property, and the Grantee is the recipient of the property.
Executor: You name this person or people in your Last Will & Testament. This person manages your assets that are outside of the Trust. To me, it makes sense to have your Successor Trustee and Executor be the same person so there’s no conflict, but some people prefer to appoint different people. They will be responsible for distribution your personal property items like clothes, jewelry, cars, furniture, etc.
Guardian: You name this person or people in your Last Will & Testament as well. This person gets your minor children. You can name two separate people, although it’s not super common to do so: “Guardian of Estate” and “Guardian of Person.” For example, you want the kids to live with Grandma but she’s not super financially savvy, so you name your brother to manage the finances for your children (Guardian of Estate), while the kids live with Grandma (Guardian of Person).
Power of Attorney Agent: You name this person or people in your Durable Power of Attorney. This person manages your financial affairs only if you are incapacitated (certified by a physician). They can access all your finances/assets, sign on your behalf, pull out money, close accounts, open accounts…pretty good idea to choose someone you trust for this role.
Health Care Agent: You name this person or people in your Health Care Directive. This person manages your medical affairs and decisions only if you are incapacitated (certified by a physician). They can pull the plug on ya, so choose wisely!